President Obama's Tax Cut for... Wealthiest Americans

A story of horror.


A story of wealth.


A story of insider-trading and price-fixing.


A story of a philosopy - and, a car...


Yes, as surely as Carol Anne stares into the electric static glow of the unplugged (yet somehow strangely still 'on') television set - say it with me now,  "They're here..."

And, they're NOT going away. 

DETROIT FREE PRESS, FEBRUARY 15, 2012:    The budget President Barack Obama proposed Monday would increase the tax credit for buyers of electric vehicles -- from the $7,500 maximum to a $10,000 maximum -- and expand the credit to other "advanced technology vehicles."

Under the proposal, the tax credit would apply to vehicles that operate primarily using an alternative to gasoline, as long as that technology is not currently widespread in the U.S. The preliminary budget document, from the U.S. Treasury's website, lacks details about the vehicles that would qualify.

The amount of the tax credit would vary by the fuel efficiency of the vehicle, but would be at least $7,500 for electric vehicles.

...

The budget is for the fiscal year starting Oct. 1 and is not expected to pass Congress. Republicans control the House and are attempting to take back the presidency from Obama in the November election.

Still, the proposal shows Obama's continued support for subsidizing electric vehicle purchases, despite the controversy surrounding the government's recent investigation into the Chevrolet Volt and the car's slower-than-expected sales.

Critics have said the administration is propping up the Volt because of its ownership stake in General Motors. Some have also suggested the tax credit is a tax break for the rich; GM has touted its well-off Volt buyers, since the automaker wants more buyers who will pay for technology. Still, the expansion of the tax credit could also make electric vehicles less expensive or include buyers of less-expensive technology.

Okay, a couple of things:

1. As discussed in prior posts, the Chevrolet Volt will cost the average American approximately $46,000.  The vehicle currently has a $7,500 tax credit associated with it.
2. With a price tag this steep, the Chevrolet Volt is out of reach for MOST Americans (payment over 60 months at 4.88% financing = $870 per month (assuming you receive a tax Credit, which has NO impact on your initial purchase price))
3. In 2011, General Motors sold fewer than 8,000 Chevrolet Volts for the full year.  Missing its sales objective in the first year by over 20%
4. Chevrolet initially claimed they missed their sales targets because of 'availability' issues, where supply couldn't keep up with massive demand for the product - however, having just done another NEW Volt search on cars.com, I find that there are over 1,400 Volts in stock within 500 miles of my home.  No, NOT a 'supply' problem - perhaps a 'Demand' issue?
5. If I purchase a 2012 Ford Focus I'll get 28 local and 38 highway MPG on regular gas running about $3.85 per gallon in NY.  All this for an investment of about $22,000.  No tax rebates, no credits, just an honest supply / demand economic transaction from one private party to another
6. Purchasing the 2x as expensive Chevrolet Volt will get me (according to cars.com)...

 
A whopping 93 MPG!!!  (For approximately 45 miles per charge - after which I need to fire up the gasoline engine requiring PREMIUM Unleaded, at $4.39 per gallon). 

Then, while in 'gas mode' I'll bask in the carbon-monoxide joy of 36 MPG highway - yes, '2' fewer MPG than the 'bargain basement' Focus would get me while burning REGULAR gas. 

So WHY would the President propose a TAX CREDIT for the wealthiest Americans (the only ones who could afford this dog???)

Because HE wants to - it's HIS money. 

And when you're a guy like President Obama, it's the ONLY reason you need.

But there ARE more reasons, but I have no time to discuss them today - I'm burning daylight and when you are lucky enough to have a job during the "Obama Recovery", you want to keep it. 

Because unlike Chevrolet Volts, when it comes to 'jobs', they're not just laying around waiting for you to pick one up. 

Have a nice day folks, I will wrap this up this weekend.

Be nice to each other - we're all we've got...